Engineering Inc. - September/October 2007 - 4

NEWs & NotEs Bridge Collapse Prompts Shift in Infrastructure Funding Debate Infrastructure Stocks Rise After Bridge Collapse N I ow a symbol of the nation’s crumbling infrastructure, the Minneapolis bridge disaster is prompting renewed pledges to address infrastructure needs. Rep. Jim Oberstar (D-Minn.), chairman of the powerful House Transportation and Infrastructure Committee, promised increased funding. “When the next highway bill comes up in 2009, Congress won’t settle for a bargain-basement measure,” Oberstar said. The Safe, Accountable, Flexible, Efficient Transportation Equity Act was passed in 2005—two years late and almost $90 billion short of the $375 billion the Department of Transportation requested. Rep. Don Young (R-Alaska), former House Transportation Committee chairman, said there are 500 bridges across the country similar to the one in Minneapolis. “These are potential deathtraps,” he said. “We have to, as a Congress, grasp this problem,” added Young. “And, yes, I would even suggest, fund this problem with a tax. May the sky not fall on me.” CDM Executive Vice President Bill Howard, a former ACEC chairman, said the bridge collapse is indicative of subsurface infrastructure needs. “Our infrastructure under the ground—our water and utility systems—are in just as sore need of repair and replacement as our aboveground infrastructure,” Howard said. ACEC members have been active as spokespersons since the bridge collapse. HNTB Federal Systems Chairman Gen. Barry McCaffrey appeared on MSNBC, citing the deplorable state of America’s infrastructure. In the week prior to the collapse, ACEC President Dave Raymond’s comments on America’s declining competitiveness due to infrastructure shortcomings were carried on WTOP radio in Washington, D.C. In a joint statement, ACEC Chairman Mac MacMurray and Raymond called the bridge collapse a tragic “wake-up call” to focus on the nation’s aging infrastructure both above and below ground. “The events in Minneapolis remind us that the loss of human life is too high a price to pay for deteriorating and overstressed systems,” the statement read. nfrastructure stocks rose after the collapse of the 40-year-old I-35W bridge in Minneapolis. Analysts said the spike was largely due to interest from investors who expect increased U.S. funding for the renovation of outdated bridges and roads. “This unfortunate incident in Minnesota is raising awareness on some of the civil infrastructure stocks,” said Steven Fisher, an analyst at UBS Securities. “It certainly raises awareness of the need for spending in our country on improving our highways and bridges and transit systems.” Fisher said companies such as AECOM Technology Corp., Jacobs Engineering Group, Inc., Fluor Corp. and URS Corp. saw spikes in share price following the tragedy. Fisher also said the U.S. civil infrastructure market is growing, citing $265 billion for U.S. highway funding passed in 2005, another $20 billion in California bonds in November and other state bond issues. “Along with the steam-pipe incident in New York, these kinds of incidents raise awareness of the fragility of our infrastructure,” said Fisher. ENGINEERING INC. sEptEmbER/oCtobER 2007 Joshua adam Nuzzo/Getty ImaGes

Engineering Inc. - September/October 2007

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